Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality Products
• Environmental Protection
• Occupational Safety and Health
• Diversity and Inclusion
• Compliance

Environmental Achievements

• Reduced CO2 emissions by 13.7% exceeding the planned reduction of 1% or more compared to the previous year
• Recycling rate of 93.4% of water used for production
• 99.7% of co-products reused

Social Achievements

• Implemented rank-based training within the sales department, ensuring all employees received training within two years of assignment
• Implemented customer satisfaction surveys and gave thorough feedback
• Improved technical skills and conducted high-quality human resource development programs

Governance Achievements

• Steady execution of training to foster and maintain a sense of compliance (100% achievement)
• Improved employee awareness of ethics reflected in the Corporate Ethics Awareness Surveys

Climate Goals & Targets

Environmental Challenges

• COVID-19 impacted some scheduled quality audits, rescheduling them to FY2020
• Workplace fatalities (4 in 2018, 2 in 2017)

Mitigation Strategies

• Rescheduled audits to FY2020 due to COVID-19
• Strengthened safety activities with awareness of workplace vulnerabilities, rebuilt health and safety management system (adopting ISO), rolled out safety activities utilizing ICT

Supply Chain Management

Supplier Audits: Conduct quality audits on affiliate companies (30 in FY2019, 32 planned for FY2020)

Responsible Procurement

• Purchasing and Procurement Policies to promote fair and sincere procurement activities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, ISO 26000, TCFD

Certifications: ISO 9001 (Caterpillar's SQEP Gold Level for JFE Steel West Japan Works and JFE Shoji)

Sustainable Products & Innovation

• Low alloyed & low atmospheric corrosion steel
• BRITE-ACE tin-free steel
• FM800 nickel-free-alloyed steel powder

Awards & Recognition

• The Commendation for Science and Technology
• JSPMI Prize, Chairman’s Prize
• Okochi Memorial Award
• Prize of the Chairman of ECCJ for Energy Conservation Best Practices at Workplaces, Energy Conservation Grand Prize Award
• Prime Minister's Prize for Monozukuri Nippon Grand Award
• National Commendation for Invention, Japan Institute of Invention and Innovation Chairman’s Award
• Derwent Top 100 Global Innovator 2018-2019 Award
• Progress Award (Technical Category)
• Prize of Director-General of the Industrial Science and Technology Policy and Environment Bureau
• Excellent Environmental Equipment Award
• Distinguished Service Award, Engineering Advancement Association of Japan
• Excellence Award in the 23rd Environmental Communication Awards
• Grand Prize of Minister of Economy, Trade and Industry in the Energy Conservation Grand Prize Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling
• Biodiversity
• Community Engagement
• Digital Transformation

Environmental Achievements

• Reduced CO2 emissions by 6,600 tonnes per year through optimized coke furnace combustion.
• Reduced CO2 emissions by approximately 4.74 million tonnes in FY2021 through granulated blast furnace slag supply.
• Achieved a 5% reduction in fuel used in coke furnace operation.
• Commercialized various eco-friendly products using steel slag, contributing to resource recycling and biodiversity preservation.
• Developed and commercialized resource-saving silicon gradient steel sheet, contributing to greater efficiency and downsizing of electrical equipment.

Social Achievements

• Established a collaborative research laboratory with Tohoku University for green steel research.
• Established the JFE Engineering Carbon Neutrality Collaborative Research Center with the Tokyo Institute of Technology.
• Engaged in community investment through seaweed bed creation projects, contributing to biodiversity and CO2 absorption.
• Expanded overseas infrastructure businesses, including water treatment and bridge construction projects.
• Developed a horizontal recycling system for PET bottles, reducing CO2 emissions by 63% compared to using crude oil.

Governance Achievements

• Received numerous awards for technological advancements in eco-friendly products and processes.
• Implemented digital transformation initiatives to improve operational efficiency and sustainability.
• Actively obtained and disclosed EcoLeaf certifications for its products.

Climate Goals & Targets

Environmental Challenges

• Meeting the increasing demand for high-grade electrical steel sheets for electric vehicles.
• Addressing the challenges of transporting high-pressure hydrogen gas.
• Minimizing the environmental impact of steel production.

Mitigation Strategies

• Expanding electrical steel sheet production capacity.
• Researching and developing line pipe for high-pressure hydrogen transportation.
• Developing and implementing various eco-friendly products and processes to reduce CO2 emissions and resource consumption.
• Investing in digital transformation to optimize operations and reduce energy consumption.

Supply Chain Management

Responsible Procurement

• Global supply chain for steel sheets; collaboration with suppliers for offshore wind power generation.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products; expansion of renewable energy business.

Reporting Standards

Frameworks Used: ISO 14025:2006

Certifications: EcoLeaf

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)

Various initiatives contribute to these goals through renewable energy development, sustainable infrastructure construction, resource recycling, and biodiversity preservation.

Sustainable Products & Innovation

• Various eco-friendly steel products; resource-saving silicon gradient steel sheet; Denjiro® insulation-coated pure-iron powder; thin, fatigue-resistant steel for steel structures.

Awards & Recognition

• 2022 Award for Science and Technology from the Minister of Education, Culture, Sports, Science and Technology (multiple awards)
• 2023 Award for Science and Technology from the Minister of Education, Culture, Sports, Science and Technology
• 2022 Japan Institute of Energy Award (Academic Award, Technical Division)
• Minister of Economy, Trade and Industry Grand Prize, Energy Conservation Grand Prize 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Recycling
• Biodiversity
• Resource Efficiency
• Innovation

Environmental Achievements

• Developed high-efficiency autonomous cleaning robot "GAZMASTER TM-S" reducing work burden and improving safety and productivity.
• Developed a cyber-physical system for blast furnace operations, boosting labor productivity and reducing CO2 emissions.
• Developed a motor using DenjiroTM insulated pure-iron powder, making motors 48% thinner and 40% lighter.
• Introduced a test facility to develop steel products for liquid ammonia tank containers.
• Developed an anti-weatherability steel product that does not require a paint finish, reducing life cycle costs.
• Developed an ultra-hydraulic hydrogen accumulator, used in multiple hydrogen stations.
• Developed Wall Bending and Restrike Method and inflow control method for ultra-high tensile steel sheets, reducing springback and wrinkles in automotive parts.
• Developed 980 MPa class galvanized steel sheet for hybrid EV battery module components.
• Opened Kasaoka Monopile Factory for offshore wind turbine foundations.
• Launched a 20-year O&M contract for offshore wind power facilities using a remote integrated management system.
• Completed construction of a telecommunication optical fiber cable pipeline across Tokyo Bay using JFE-RAPID TM method.
• Launched hydroelectric power generation business at the Ukedogawa Hydro Power Station.
• Provided combined utility services in Myoko City, contributing to its zero-carbon goals.
• Joined Sendai City’s plastic recycling project and established J Circular System Co., Ltd. for large-scale plastic recycling.
• Developed a jack-up method for streamlining bridge construction.
• Developed a waste chemical recycling technology (C-PhoeniX ProcessTM) through the Green Innovation Fund.
• Participated in an Energy Forest Project for biomass fuel development.
• Acquired EcoLeaf certification for various steel products.
• Developed technology for optimized combustion of a coke furnace, reducing fuel use and CO2 emissions.
• Developed a fuel and power operation guidance system for steelworks, optimizing energy use.
• Developed resource-saving silicon-gradient steel sheet for electrical equipment.
• Developed a thin version of anti-fatigue-damage steel (AFDTM steel) for improved bridge safety.
• Developed extra-thick, high-strength steel plate for large container ships.
• Developed calcia improvement material for effective use of dredged soil.
• Used finely ground blast furnace slag in precast concrete products.
• Used granulated blast furnace slag in cement production, reducing CO2 emissions.
• Developed Marine StoneTM and Frontier RockTM steel slag products for restoring marine ecosystems.
• Established a Collaborative Research Laboratory for Green Steel with Tohoku University.
• Established JFE Engineering Carbon Neutrality Collaborative Research Center with Tokyo Institute of Technology.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Springback in ultra-high tensile steel sheets.
• Press wrinkles in ultra-high tensile steel sheets.
• Stress corrosion cracking in steel exposed to liquid ammonia.
• High cost of anti-weatherability nickel steel.
• Hydrogen embrittlement in steel pipes for hydrogen transport.
• Fatigue cracking in thin-walled bridge members.

Mitigation Strategies

• Developed Wall Bending and Restrike Method to suppress springback.
• Developed inflow control method to reduce wrinkles.
• Developed new test facility for evaluating stress corrosion cracking.
• Developed anti-weatherability steel using tin and niobium instead of nickel.
• Developed evaluation criteria and methods for high-pressure hydrogen pipelines.
• Developed thin, fatigue-resistant AFDTM steel.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and renewable energy solutions.

Reporting Standards

Frameworks Used: Null

Certifications: EcoLeaf (SuMPO EPD), J Blue CreditTM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)

Various initiatives contribute to these goals through renewable energy development, resource efficiency, sustainable infrastructure, and marine ecosystem restoration.

Sustainable Products & Innovation

• GAZMASTER TM-S
• DenjiroTM motor
• Anti-weatherability steel
• Ultra-hydraulic hydrogen accumulator
• Wall Bending and Restrike Method
• Inflow control method
• 980 MPa class galvanized steel sheet
• AFDTM steel
• Extra-thick steel plate
• Calcia improvement material
• Finely ground blast furnace slag concrete
• Marine StoneTM
• Frontier RockTM
• Resource-saving silicon-gradient steel sheet

Awards & Recognition

• 70th (FY2023) Okochi Memorial Technology Award
• FY2024 National Commendation for Invention
• FY2023 Ministry of the Environment Commendation for Action for Climate Change
• 32nd Global Environment Award
• 2022 Award for Science and Technology (Minister of Education, Culture, Sports, Science and Technology)
• 2023 Award for Science and Technology (Minister of Education, Culture, Sports, Science and Technology)
• 2018 Invention Prize of National Commendation for Invention
• 2019 Okochi Memorial Prize
• 2022 Japan Institute of Energy Award (Academic Award, Technical Division)